Hard Money (Private Investor Lending)

Hard Money Loan – Private Investor Lending

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies.

Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk and shorter duration of the loan. Most hard money loans are used for projects lasting from a few months to a few years. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.

Loan to value to 75% for improved, unimproved and commercial properties in the State of Hawaii

Lava Zones 3 and higher for Big Island properties

Rates from 10% to 14% with interest only terms from 6 to 24 months

Payments and fees can be included in the financing with adequate property value

NO credit or income proof required

Fast processing and closing times

What is a Private Money Lender?

A non-institutional (non-bank) individual or company that loans money, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction. Private money lenders are generally considered more relationship-based than hard money lenders.